FRIDAY, 11.30AM
SOUTH Africa’s first quarter current account deficit widened to R1,9-billion from only R100-million in the last quarter of last year, largely due to an unexpected drop in exports, the Reserve Bank said on Thursday in its Quarterly Review.
The figures are being taken as bad news for economic growth, given that the rand’s 22% slide last year was touted as a catalyst for a boom in exports. First quarter data showed that the economy had already bagun to contaract slightly.
However, some analysts believe the signs are right for a rebound in exports, and latest manufacturing output, up substantially in the first quarter to 3,5% from 2% the previous quarter, contradicts the other signs of an imminent downturn.